When selling goods to foreigners in USD, when the exchange rate improves, the Rand value of the purchase improves too
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The ZAR Exchange Rate Thread
- Thread starter Robin Hood
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When selling goods to foreigners in USD, when the exchange rate improves, the Rand value of the purchase improves too
If it goes over the imaginary wall and stays there it will probably keep going in the next few days.
Thingyyyyyy
Expert Member
yes and I asked you what goods?
Don't be coy. If you prefer not to be helpful say so. Or if your opinion is baseless say so.
But see it being good for you and being good in general for SA, are two completely different things.
I prefer not to be helpful.
I can't stand the entitled behaviour of people on the internet where they demand others do their thinking for them, or want more details but cant go to the effort of typing the "bing.com" into their browser.
I you don't believe that this is good news, then great for you.
Not necessarily
Cius
Honorary Master
Well, one fin24 writer does not think it will last: http://www.fin24.com/Economy/Low-rand-wont-last-20130529-2
Seriously
Honorary Master
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He compares it with the past. Things changed and conditions are less favorable now that is going to outlast the factors that were resulting the recoveries in the past.
List them.
Labour relations
Strikes
Corruption
Inept government
GDP
Wastage
.
.
.
.
AthenianOwl
Executive Member
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Awesome 
SA's becoming 2nd Zimbabwe. Imagine what SA will look like in 10 years from now
Terminal cANCer IS TERMINAL. It cannot be cured. The only way to survive this is to GTFO here with your soul intact.
SA's becoming 2nd Zimbabwe. Imagine what SA will look like in 10 years from now
Terminal cANCer IS TERMINAL. It cannot be cured. The only way to survive this is to GTFO here with your soul intact.
Sinbad
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And SA is a net importer.
Which is bad by itself.
MickeyD
RIP
Thingyyyyyy
Expert Member
oh lovely So you have no basis.
Good to know. I can't stand the entitled behavior of people on the internet that makes baseless claims and then can't back it up.
dlk001
Executive Member
From a mining pointing of view, weaker rand means good revenue from commodity exports but encourages a whole bunch of imported inflation. Mining companies are struggling to profit from weaker rand because commodity prices are dropping faster and capital costs are outpacing inflation.
The cost of infrastructure projects is also going to escalate because we import a whole lot of equipment and human skills to run the capital projects.
The cost of infrastructure projects is also going to escalate because we import a whole lot of equipment and human skills to run the capital projects.
Awesome
SA's becoming 2nd Zimbabwe. Imagine what SA will look like in 10 years from now
Yeah, thats it.
SA is full of unwitting racists.
Black leaders will eventually fail. SA will become like Zimbabwe. etc etc
Despite all the data suggesting that the comparison itself is ludicrous
Last edited:
LazyLion
King of de Jungle
Zuma missed opportunity: DA
A few hours after President Jacob Zuma sought to allay investor fears at an unexpected news briefing on Thursday, the rand dropped to its lowest level in four years.
The local currency weakened to R10 against the US dollar, levels it last reached in March 2009.
The opposition Democratic Alliance criticised Zuma's address to the media at the Union Buildings in Pretoria, saying it had been a missed opportunity.
DA MP Lindiwe Mazibuko said Zuma should have spoken decisively about the problems facing the economy.
"But instead of a plan of action on how to address our economic growth collapse to just 0.9 percent in the first quarter, we received only more of the vague reassurances which have characterised his term in office," said Mazibuko.
She said if Zuma were "serious" about addressing the country's economic problems he would have announced immediate changes to the "winner takes all" labour relations which had caused tensions between competing unions.
The briefing was called by Zuma to speak on the economy and developments in the mining sector.
Zuma told reporters South Africa needed a stable mining industry in order to increase its economy growth.
"Our country needs a stable and growing mining industry. Mining has been a key feature of this country's economy for more than 130 years," Zuma said.
He said the mining sector remained the cornerstone of the economy, "even though now smaller, relative to the size of the overall economy".
Mining accounted for six percent of the country's gross domestic product (GDP) and generated 60 percent of South Africa's export revenue, he said.
The mining sector employed about one million people including nationals from neighbouring countries.
Zuma said the mining sector had been negatively affected by the depressed global economic growth, especially in Europe.
"The global recession has led to substantial declines in commodity prices and in the demand for our minerals abroad," he said.
"And when our mining sector is in difficulties, this affects the wider economy, leading to industrial slowdown."
Zuma said 2012 was a difficult year for the mining sector with the death of more than 40 people during a strike in Marikana.
However, government had acted to address labour relations in the mining sector.
Last week, Deputy President Kgalema Motlanthe was tasked to lead talks with labour and the mining companies, assisted by finance, labour and mineral resource ministers.
Zuma said Finance Minister Pravin Gordhan had been using every available opportunity to reassure foreign and domestic investors of government's seriousness and commitment to the mining sector.
Mining Minister Susan Shabangu would also continue supporting the mining industry -- in policy and operational aspects -- to promote stability in the sector.
"Also high on the agenda is the improvement of the living conditions in the mining town, which we committed to as business, government and labour in October last year," Zuma said.
He called on all concerned parties to "recognise the impact of the industrial relations environment on jobs and development".
Zuma said everything done in the mining sector should be done to strengthen and grow it.
All sectors of the economy to work harder to strengthen economic performance.
"We must strengthen economic performance and increase growth," Zuma said.
"We cannot deliver growth on our own. We need business labour and community sectors to play their part. More importantly we need all South Africans to play their part."
A united effort was needed to improve economic growth from the 0.9 percent GDP reported in the first quarter of 2013 to the 2.7 percent targeted by government for the year, Zuma said.
Only three questions where entertained by the president after delivering his speech.
Source : Sapa /pd/fg/hdw
Date : 30 May 2013 15:15
A few hours after President Jacob Zuma sought to allay investor fears at an unexpected news briefing on Thursday, the rand dropped to its lowest level in four years.
The local currency weakened to R10 against the US dollar, levels it last reached in March 2009.
The opposition Democratic Alliance criticised Zuma's address to the media at the Union Buildings in Pretoria, saying it had been a missed opportunity.
DA MP Lindiwe Mazibuko said Zuma should have spoken decisively about the problems facing the economy.
"But instead of a plan of action on how to address our economic growth collapse to just 0.9 percent in the first quarter, we received only more of the vague reassurances which have characterised his term in office," said Mazibuko.
She said if Zuma were "serious" about addressing the country's economic problems he would have announced immediate changes to the "winner takes all" labour relations which had caused tensions between competing unions.
The briefing was called by Zuma to speak on the economy and developments in the mining sector.
Zuma told reporters South Africa needed a stable mining industry in order to increase its economy growth.
"Our country needs a stable and growing mining industry. Mining has been a key feature of this country's economy for more than 130 years," Zuma said.
He said the mining sector remained the cornerstone of the economy, "even though now smaller, relative to the size of the overall economy".
Mining accounted for six percent of the country's gross domestic product (GDP) and generated 60 percent of South Africa's export revenue, he said.
The mining sector employed about one million people including nationals from neighbouring countries.
Zuma said the mining sector had been negatively affected by the depressed global economic growth, especially in Europe.
"The global recession has led to substantial declines in commodity prices and in the demand for our minerals abroad," he said.
"And when our mining sector is in difficulties, this affects the wider economy, leading to industrial slowdown."
Zuma said 2012 was a difficult year for the mining sector with the death of more than 40 people during a strike in Marikana.
However, government had acted to address labour relations in the mining sector.
Last week, Deputy President Kgalema Motlanthe was tasked to lead talks with labour and the mining companies, assisted by finance, labour and mineral resource ministers.
Zuma said Finance Minister Pravin Gordhan had been using every available opportunity to reassure foreign and domestic investors of government's seriousness and commitment to the mining sector.
Mining Minister Susan Shabangu would also continue supporting the mining industry -- in policy and operational aspects -- to promote stability in the sector.
"Also high on the agenda is the improvement of the living conditions in the mining town, which we committed to as business, government and labour in October last year," Zuma said.
He called on all concerned parties to "recognise the impact of the industrial relations environment on jobs and development".
Zuma said everything done in the mining sector should be done to strengthen and grow it.
All sectors of the economy to work harder to strengthen economic performance.
"We must strengthen economic performance and increase growth," Zuma said.
"We cannot deliver growth on our own. We need business labour and community sectors to play their part. More importantly we need all South Africans to play their part."
A united effort was needed to improve economic growth from the 0.9 percent GDP reported in the first quarter of 2013 to the 2.7 percent targeted by government for the year, Zuma said.
Only three questions where entertained by the president after delivering his speech.
Source : Sapa /pd/fg/hdw
Date : 30 May 2013 15:15
Thingyyyyyy
Expert Member
That is just why I asked the question. I understand it is good for some sectors in some kind of way. But it also impacts the same sectors when they import equipment.
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